Typically when a reverse merger happens the shell company has some cash on hand. Their assets are cash and being publicly listed. In this case, there is just the public listing. WC wouldn’t pay that much to simply get listed. I realize they own 41% of SOUPQ but that also means that whatever they give up to those shareholders means giving up 59% of it.
Honestly, this is super risky. I could argue that they have no reason to do a reverse merger. You do that to gain access to capital to grow a business. They don’t need capital from other people, they have enough.
On the other hand, they may not want to commit additional funds to this investment, so maybe they do want to raise outside capital (go public) but still maintain majority ownership.
I say it’s risky because in scenario A, SOUPQ shareholders get nothing. In scenario B, they get a small portion of the business for the public listing (call it 5-10%). Not tiny, but not 50%.
